Current Analysis: AviChina Industry & Technology (AVIJF)

AviChina Industry & Technology Co Ltd (AVIJF) is engaged in the development, manufacture, sales, and upgrade of civil aviation products and defense products such as helicopters, trainer aircraft, general-purpose aircraft and regional jets for domestic and overseas customers.

The company also collaborates with international aviation product manufacturers. AviChina has three operating segments: (1) Aviation entire aircraft; (2) Aviation ancillary system and related business which generates key revenue; and (3) Aviation engineering services. The Aviation entire aircraft segment includes helicopters, trainer aircraft, and general aircraft for both civil and military uses. AviChina mainly conducts its business in China.

AviChina Industry & Technology Company Limited was incorporated in 2003 and is based in Central Hong Kong. It is a subsidiary of Aviation Industry Corporation of China, Ltd.

Three key data points gauge AviChina or any dividend-paying firm. The key three are:

(1) Price (2) Dividends (3) Returns.

Those three keys also best tell whether any company has made, is making, and will make money.

 

AVIJF Price 

Over the past year, AviChina’s share price fell about 19% from $0.53 to $0.43 as of Friday’s market close. Over the past 21 years in business the company’s share price has never been less than $0.045 or more than $1.00.

If AviChina shares trade in the range of $0.10 to $0.60 this next year, their recent $0.43 share price might rise to $0.50 by next year. Of course, AVIJF price could also drop about the same $0.07 estimated amount, or more.

My $0.07 upside is $0.05 over the average annual price gains over the past 21 years AviChina has been in business.

 

AVIJF Dividend

AviChina has paid annual variable dividends since June 2016. The most recent $0.0124  dividend was declared March 15th for shareholders of record May 29th and was paid out June 30th. A forward looking $0.0124 annual dividend yields 2.88% at Friday’s closing price.

 

AVIJF Returns

To put it all together, a $0.0824 estimated one year gross gain per share shows up when adding AVIJF’s  $0.0124 estimated annual dividend to the estimated price upside of $0.07, equalling $0.0824 in gross gains per share.

A little over $100 buys us 233 shares at the $0.43 share price.

A $1 broker fee (if charged), paid half at purchase and half at sale, might take about $0.0043 per share out of the $0.0824 annual estimated gross-gain to give us a net gain of $0.0781X 233 shares = $18.20 for about a 18.2% estimated net gain for the year.

Furthermore, the $2.88 annual dividend income from $100 invested is almost 6.7 times greater than AviChina’s $0.43 single share price. By these numbers, AviChina Industry & Technology Co Ltd may be an ideal dividend dog.

 

In sum, AviChina Industry & Technology Co Ltd is a 21 year-old dividend-paying Hong-Kong-based aviation fabrication and engineering firm with an 8-year record paying annual dividends.

The exact track of AVIJF future price and dividend will entirely be determined by market action.

Remember, the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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